Uncertainty around Brexit, compounded by fluctuating exchange rates, is forcing manufacturers and retailers to increase costs which is squeezing the margins of UK haulage operators, says the Road Haulage Association (RHA).

Launching its Budget submission to Government, the RHA is calling on the Chancellor to take action on Brexit to ensure free trade.

RHA Chief Executive Richard Burnett said: “Brexit is now less than 19 months away and we are highlighting to Government the importance of free-flowing borders and current reliance on EU workers.

“Our members are reporting a stable economy with a strong demand for their services. However, they also report that cost pressures are growing fast as manufacturers and retailers, impacted by exchange rate fluctuations, increase their costs, squeezing the margins of UK operators even further. If the UK economy is to continue to flourish, a stable future for this nation’s haulage industry must be guaranteed”.

With a shortage of 45,000 drivers, the RHA said the transport and logistics sector also needs a £2 million training “shot in the arm” from the Chancellor, to “support training and apprenticeship initiatives aimed at young people, the disabled, women, former members of the armed forces and ex-offenders”.

The RHA, which represents 7,000 businesses who operate 250,000 HGVs between them, said the move could return £30 million to the UK economy – making it “an excellent value for money investment in jobs”.